South Star closes first tranche of private placement raising C$828,227

South Star Battery Metals Corp. (TSXV: STS) (OTCQB: STSBF) has closed the first tranche of its non-brokered private placement, issuing 5,521,512 units at C$0.15 per unit for gross proceeds of C$828,227, according to a company statement.

Each unit consists of one common share and one warrant allowing the holder to purchase an additional share at C$0.20 for five years. The company can accelerate warrant expiry if shares trade at or above C$0.40 for ten consecutive days after four months, with 30 days notice.

The securities are subject to a four-month statutory hold period. Proceeds will fund exploration and development activities, general expenses, and working capital.

The company has increased the total offering size to C$6,255,000 after funds controlled by Interim CEO Tiago Cunha agreed to purchase C$2,085,000 of units instead of convertible notes as previously announced. Cunha-controlled funds purchased 1,557,912 units in the first tranche, giving him direction over 19.9% of outstanding shares.

South Star plans a shareholder meeting around November 17, 2025, to approve Cunha becoming a control person. Upon approval, his funds will purchase an additional 12,342,088 units to complete their C$2,085,000 investment commitment.

Company insiders purchased 2,007,912 units total in the first tranche. The company states this constitutes a related party transaction under securities regulations but relies on exemptions since the transaction value does not exceed 25% of market capitalization.

The first tranche remains subject to TSX Venture Exchange approval. South Star anticipates closing additional tranches in coming weeks, pending regulatory approvals.

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